Energy Transfer will supply up to 1mtpa of LNG on a free-on-board basis. Credit: Piotr Swat/Shutterstock.com.

Energy Transfer LNG Export, a subsidiary of Energy Transfer, has signed a 20-year sale and purchase agreement (SPA) with Kyushu Electric Power Company (Kyushu) for the supply of liquefied natural gas (LNG) from its Lake Charles LNG project.

The deal will see Energy Transfer provide up to one million tonnes per annum (mtpa) of LNG on a free-on-board basis, with pricing linked to the Henry Hub benchmark.

Energy Transfer LNG’s commitment under the SPA is contingent on a positive final investment decision (FID) for the Lake Charles LNG project and the fulfilment of other conditions precedent.

This agreement follows Energy Transfer’s recent announcement of a heads of agreement (HOA) with MidOcean Energy for approximately 5mtpa of LNG production from the same facility.

Recently, Energy Transfer LNG also entered into another SPA with an international energy company for 1mtpa and an HOA with a German energy company for a similar volume.

Energy Transfer LNG president Tom Mason said: “We are proud to be selected as an LNG supplier by Kyushu, one of Japan’s leading energy companies. Kyushu has been supportive of Lake Charles LNG for a long time and we appreciate their loyalty. We are also pleased that Lake Charles LNG continues to make strong strides toward full commercialisation.”

The project will leverage Energy Transfer’s existing infrastructure including four LNG storage tanks, two deep-water berths and the Trunkline natural gas pipeline system.

This pipeline system links to several intrastate and interstate pipelines, which enable access to several natural gas-producing basins including the Haynesville, the Permian and the Marcellus Shale.